Pettway Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the decision is made by choosing the project with the higher IRR, how much value will be foregone? Note that under some conditions choosing projects on the basis of the IRR will cause $0.00 value to be lost. WACC = 13.4%

Select the correct answer.

$0.00

$95.22

$89.82

$97.92

$92.52

2 Year CF.- CFs$1 s800 $400 $405 $410 $415 8$1,005 CFi s22 $800 $809 $818 $827 1s2111